BUSINESS leaders called yesterday for a shake-up in the transition from education to employment to help prepare young people for the world of work.

BUSINESS leaders called yesterday for a shake-up in the transition from education to employment to help prepare young people for the world of work.

The British Chambers of Commerce said 16 to 18-year-olds should be equipped with skills to meet the needs of firms.

A report being presented to the Chambers' national conference in London today said the UK's system of transition from education to employment was in need of modernisation.

President Isabella Moore said businesses were concerned about the levels of literacy and numeracy among young people.

"We believe firmly that we should have more vocational training as part of post-16 education because employers want young people with employable skills. Young people need education and training, not education or training."

Ms Moore said not enough emphasis was being placed on vocational skills.

The report, written by a special skills task force set up by the Chambers, said, "A central barrier to raising UK productivity, which currently lags behind many of our major global competitors, including the US and France, is the lack of higher level skills in the economy."

The report recommended that everyone staying in education after the age of 16 should receive vocational training.

It also urged the Government to tackle the high drop-out rates at some universities, which is believed to cost £250m a year.